Budget week this week.

Now before anyone gets the wrong idea, I don't have any inside goss on anything........well so far anyway. (I've always found out something good that hadn't been released before.)

But the media and politicians have lead us to believe that GST will move to 15% from the 12.5% (a price rise of 2.2% on prices not a 2.5%, as reported by muppet MSM )we have currently and there will be corresponding income tax cuts.
Now the National lead government has said that no one will be worse off after these changes, so the increase in GST revenue must equal the loss of income tax revenue and cover the cost increases of Grasshopper benefits and retired people.

Now as much as I would like to believe that, I don't think National will just give us minor income tax cuts. Already the public service is getting a hard squeeze on costs so that will help balance the budget,but I don't think that and the increased GST will cover all the costs.
National want to be perceived as good responsible government, and credit where credit's due, they are not the pack of carpet munchers and backdoor boys that the last lot are.
We're not likely to see the bribes with our own money that Labour did last electoral term, but I also think when we're borrowing $240 million a week for a nation of just over 4 million people, I don't think they will want to borrow more to pay for the tax cuts..
It's an interesting situation and once Bill English rolls out his budget hopefully we will see how it's going to pay for the cuts.

On another matter, it was interesting to see the Prime minister answered some questions put to him. John Key is not someone who is infallible, and like all politicians I don't trust 100%.
Number 14 is interesting. I find it interesting because the actual physical evidence of anthropological global warming is actually pretty flimsy. I have yet to meet a person who has denied climate change, and increasingly it's becoming apparent that the world isn'tv in fact heading to $hit in a handbag anytime soon.
In fact apart from what is known as Urban island heat effect or something like that, the evidence of global man made warming is nil. We've had an increase in carbon dioxide in the atmosphere, but since 1998 we've had nil average temperature increases over the planet.
So why is John Key and the National lead coalition still heading to introduce a carbon tax later this year??? Remember this is a government which has as a fundimental basis, low taxation at heart..


The only conclusion I've can come to is that the ETS is going to be used to raise money to help pay for the income tax cuts. And now I will just have to wait and see. Happy Budget day everybody. Hope your dreams and wishes come true and that my little bit of government gets a little bit extra.